Competing Interests Battle for Control of California Sports Betting

There are two initiatives on the November ballot in California that will legalize sports betting. The initiatives are aimed at existing tribal-owned casinos and online gambling corporations. The initiative is supported by Major League Baseball and donors to the campaign include BetMGM and the corporations behind FanDuel Sportsbook and DraftKings. It will mandate a 10 percent tax on sports bets and establish a division within the Department of Justice to regulate online betting and enforce the law. 85 percent of the tax revenue will go to homeless housing and assistance and mental health treatment. A 15 percent share will be spent on gambling addiction programs.

Prop. 27 would provide California consumers with a competitive gambling environment and the state with more revenue.

Prop. 27 would create a more robust and competitive sports betting market in California. It would generate billions in revenue for the state, gaming tribes, and operators under agreement with those tribes. Prop. 26 would benefit the gaming tribe and block out-of-state gambling companies from California's market.